Full Title: How to Unlock Pipelines of Bankable Renewable Energy Projects in Emerging Markets and Developing Countries?
Author(s): Sabine Cornieti and Claire Nicolas
Publisher(s): Energy Sector Management Assistance Program and World Bank Group
Publication Date: December 1, 2023
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Description (excerpt):
The energy transition will require a major scale-up in the deployment of renewable energy with both public and private finance playing critical roles. Aligning with the Paris Agreement targets requires a tripling of total renewable energy capacity in Emerging Markets and Developing Countries (EMDC) by 2030 and significantly augmenting financing flows towards renewable energy projects. However, there is today a global shortage of bankable renewable energy projects available for private investment. Developing a pipeline of bankable projects requires coordinated interventions by governments targeting unique barriers and risks within a country. Governments must deliver the energy transition, while enhancing affordability and reducing poverty. To achieve this, governments can address country and project-specific barriers with the support of Multilateral Development Banks (MDBs) and other development partners to lower risk levels perceived by Independent Power Producers (IPPs), creating the environment necessary to develop a pipeline of renewable projects.